23 Jun SELF ASSESSMENT: How to Pay Your July Payment on Account
The self-assessment tax system requires you to pay a tax payment on account in July. It is an estimate based on last year’s tax and the payment goes towards your next tax bill in January 2018. Unless your tax is minimal then a payment on account will be required and if it is, it is advisible to pay it. Unless your situation has changed though – then you can file a form to reduce your payment on account. Find out more…
Payment is required by 31 July 2017
There is still a month left to make the payment, however it is important to schedule it soon so it doesn’t get forgotten.
The payment on account is just an estimate, based on the tax for the previous year. In most cases this will be based on business profits to 5 April 2016.
A whole tax year has passed since then and the best way to make an accurate payment on account in July 2017, is to send your records to your accountant for the year ended 5 April 2017.
This way they can calculate a revised payment and tell you far in advance how much tax will be due in January 2018.
Even if you don’t have all the information, the accountant can make a start, and likely provide a tax estimate.
It is one way that you can ensure you keep your money in your bank a little longer and keep on top of your tax at the same time.
How to pay your tax payment on account
If you are not in the positon to get an accurate figure from your accountant, then it is important to pay your estimated payment on account by 31 July 2017. Failure to do so can result in interest come next year.
There are plenty of options to pay your tax. Just be careful that some methods are not available the closer to the deadline you get.
Same day or next day
- online or telephone banking
- by debit or credit card online
- at your bank or building society – a paying-in slip from HMRC is required
- at the Post Office – a paying-in slip from HMRC is required
3 working days
- Direct Debit (if you’ve set one up with HMRC before)
- By post, with a cheque
5 working days
- Direct Debit (if you haven’t set one up with HMRC before)